WAR FUNDS

Dominion, Volume 12, Issue 274, 15 August 1919, Page 3

WAR FUNDS

Y.KA. FIANCE HOW THE MONEY WAS SPENT REPLY TO RETURNED SOLDIERS' ASSOCIATION Some remarks on Hie administration of ihe Y.M.C.A. war funds made by a committee of tho Hotnrned Soldiers' Association were liandcd to The Dominion on Monday, and vvevo withheld from publication until tho executive of tho Y.M.C.A. hr.d been given an opportunity to reply. The report of tho committee mid the reply of the organisation concerned are noirboth available. ~ ' : Y.M.CA'S REPLY , ' THE SPHERE OP OPERATIONS. Tho' National Committee of the Y.M.C.A. prefaces its reply with the fo] lowing rema rfcs:— To enable members of the public to appreciate tho position, it is necessary to refer briefly to the extent of tho war work of tho Y.M.C.A. From tho time ■when the first secretary was sent overseas, in tho curly part of 1915, the operations of the organisation expanded, through the exigencies of the war, in an> ever-increasing degree, and in directions' not originally contemplated. Such operations miry me summarised as follow:— (a), The maintenance in Now Zealand of its work at all military camps, at military hospitals, and at 'the soldiers' hut in tho City of Wellington and other centres in tlie Dominion. (b) Tho work on troopships voyaging from and to New Zealand. _ (c) Operations in Egypt and Palestine, including tho conduct of tho well-known Soldiers' Recreation Club at Esbekia Gardens, Cairo. (<1) Operations in England at all tho New Zealand camps and military hesIjitals, and in London, which was tho centre from which the work in England and France was controlled. In London itself, apart from tho Administrative work, the operations included tho Shakes-pearo-Hu.t and other liostels, also entertainment and hospitality work. (e) Operations in France from the New Zealand base to tho firing-line. (f) Operations at Colon, Panama Canal. •Programme of Work, It requires no great effort of tho imagination to visualise the extent of such a programme and to appreciate the difficulties of carrying it out with efficiency. That" tho operations or the association met with tho hearty commendation and support of General Russell, then commanding the New Zealand Division in France, and General Richardson, then in chargo of administration in England, is sufficient ovidenco that tho programmo referred to was faithfully carried out. ' Tho statement issued■■ by the cxecm-' tivo of tho R.S.A. to the Press makes reflections on the Y.M:C.A.'s administration of the funds entrusted to it by tho public of New Zealand. Why this organisation should be singled out for special mention in connection with an agitation, whoso professed purpose is to ascertain what shoula be the ultimate disposal of war funds raised in New Zealand is not evident.

It is still less evidenr, if tho Returned Soldiers' Association is sincere in its statement that a satisfactory explanation by tho Y.M.C.A. of the questions raised would please nobody belter than tho B.S.A. itself, why the obvious course should not have been adopted of making direct application for such explanation to tho Y.M.C.A. That 6uch a course was not followed, but that the U.S.A., through its executive, on the contrary, first approached tho Minister for a Eoyal Commission, and then (not having secured its object) issued its statement to tho Press without notice of any kind to tho T.M.CA./'-are.'faets from'which the public may draw iheir own conclusions as lo tho anceriiy of its motives. It will lw seen that tho charges | against the Y.M.C.A. are based upon certain deductions from its balance-sheet by the executive- of the E.S.A. ' The various points are enumerated in a statement accompanying the letter dated June 6, 1919, addressed by the general secretary to tho Minister. The letter admits the possibility that tho deductions may ho erroneous, and from the nature of tho case it is obvious that tho deductions made from intricate accounts in tho absence of an intelligent appreciation of tho surrounding circumstances wo singularly liable to error. Tho following replies are made seriatim to the points raised 'by the Keturncd Soldiers' Association :— ■ The Basis of Appeal. (1) The primary basis of appeal mado by the } .M.C.A. was for coimorts for men m the trenches, and this datura was emphasised particularly in . connection with the Bed- Triangle Day of March, 1918. From this collection if. is understood that something in tho neighbourhood of £]00,000 was realised, but from inquiries it appears that no statement is available from tho Y.M.C.A. Since tho beginning of the war tin, Y.M.C.A., through its National Commit, tee has made a continuous appeal to tin, public for the furtherance of its wai work. Tho basis of this appeal has av all times been of a general nature. IK pamphlets in tho year 1915 specified thai, tho YM.C.A. War Fund was for work amongst New Zealand soldiers in camps in New Zealand; in training camps i>, Egypt; in hospitals and convalescent homes; in rest camps and in thofiring. line. The generality of the appeal was preserved throughout the whole period. In March, 1918, an appeal on a largo ecale was mado to the New Zealand put), lie in connection with what was knowii as "Bed Triangle' Day." The contributions on that day and as a .result therefrom total the sum of £219,293, which includes the big Auckland effort of May, 1917. It is not trim that, the primary basis of anjieal made on that occasion was for comforts for men in thb trenches; on tho contrary the advertising matter put out at that time from thb national office shows clearly that wliile special stress wa3 naturally laid on the comforts work, tho appeal 'was made foi the genera! war work of the association, I which cared for the interests of the soldier in-New Zealand; on, troopships; in the ba« camps in England and Egypt; in the hM'pitnls; and in Franco from mi f " a, "l )3 to the firing-line. Ih\ -peal known as "Bed Trianglo | Day •-.,-,s expressly authorised by thb •floii; Ct. W. llussell, Minister of Internal Allans. Ihe Minister's permission was Bought m a letter from tho chairman oi thci-isational Committee, and his roplv dated January 11, 1918, was in the foil , lew-nig terms: •[ am in receipt of-your letter of the 3rd mat. stating that it is tlu- intention of your association to hold a Bed Lrinaglo Day on March 15 next throughout the Dominion, i u the intraests of the association's war work at homo and abroad. In replying I ha\"vory much pleasure in heartily supporting this appeal The association Ims by steady, rcliablo work secured for itself tho confidence of the people of New Zealand, and I am satisfied' that it will only bo necessary to announce that this further effort is about to bo mado to ensure, a munificent response from our people. The association has my fullest approval and support in carrying out tho proposal." An appeal was thereupon made in full conformity both with tho spirit and letter of tho Minister's authority. It j s true that certain substantial" contributions were specially earmarked for trench comforts, artd tho total of these appears as a sopai'nto item on the association's balance-sheet, >nd the expenditure on trench comforts has far exceeded tho amount of those special coutribu. tions.' As to tho assertion that no statement, was available from the Y.M.C.A., the answer is that a full balance-sheet up to March 31, 19)9, has been completed and audited, and is now in tho hands of the committee Moreover, a full balancesheet of tho operations in England and France from May 1, 191G, to November 30, 1918, was issu'od from London in tho early part of tho present year and was published in tho New ZeaJander," tho "British Australasian," and oojiies sent

to lending nowspapers in New Zealand. A balance-sheet of tho operations in England and Franco up to March 31. 1919, has reached New Zealand and will bo published shortly. THE BALANCE-SHEETS. COLLECTIONS AND EXPENDITURES. (2) So far as can be deduced from tho balance-sheets submitted by fne Y.M.C.A. a total amount of something in the neighbourhood of ■£#0,000 has been collected, Of this amount the total sum which .reached tho ine.il overseas in the form of trench comforts, as shown 'by fho Y.MX'.A. statement, pago 9, amounted to Ji'i!l,29o, which represents less than eight per cent, of the total amount collected. (3) From page 8 of the Y.M.C.A.'s statement, item marked "ii," it appears that the amount received in Eng-kud from May, 191G, to November, 1918,' was .£t1i3,600, of which tho above amount of J:31,'29fl represents loss Mian four shillings in tho XL Furthermore, the Newt Zealand statement covers tho period October 1, 1916, to September SO, 1918. The corrraiwnding English statement covers tho period from May 1, 1910, to November 30, 1918. From tihis it is o'.ear that no consolidation of tho two statements is. possible. (5) From page 5; ilem marked "D," it uppeai-s that in N.ew Zealand in tho course uf two yeai's the sum- of ■£341)1 was spent in salaries and. administration expenses, etc. from the item marked "E," page 5, a further amount of administrative charges amounting to jtfl'.UO must, be 'added. From the item marked "F" on page 9, and from the item marked "G," also on page 9, two further amounts of -I'SHG ami ,£2119 respectively must also be added, making a total distributed for salaries and administrative '» expenses, etc., during this period of .£23.9;i(1. From item marked "It" on page 5 it appears that in New Zealand for two years llio administrative expenses were .EGISG, and in item marked 'J" on page G in England for the samo period they wero .£1713. To this mnsl) further be added the working expanses at hub shown as £1599 (item "J"), and item "K," page !), Headquarters' £im, approximately a total of -.£11.(168. This,with the previous Item of .£2,3,930, makes a. total of •£38,001, and it is noted that this sum was spent in administrative expenses, salaries, etc., in distributing in comforts to the trenches an amount of .£81,290. Parojrrnphs (2), (3), and (■,) all deal with specific items of expenditure in tho ha,]-tmce-sheets, with the object of endeavouring to, prove: i 1. That the percentage of tho moneys spent on comforts for the soldiers was so ?ii«ill us to be out of all proportion to tho total funds raised.

2. Hint the administrative expenses wore extravagant, and entirely disproportionate to the results achieved. An uHbinwd scrutiny «f iho balancesheet mil sfhow that the actua.S administrative expenses have been extremely low. Jhe fI.S.A. Executive, to arrive at its rural conclusion m paragraph 5, his included as administrative charges totais which are o'.early Tunning expenses and part of tho free service to tho men on active service.

,Z h V bi f I,ulce 1 hcet "P 10 March 31, li J. , c ' uscs " la t tho total income l'or the I.U.C.A. war work in New Zealand and overseas was .£361,451 Us. (ill. Up to November 30, 1!)1S, tlio sum nf £io3,Sofl 'ha-d been remitted to London for expenditure in England and i'rnnco, as is shown by the balance-sheet under discussioln. JTurlhci- sums had been remitted to Egypt, but quite a large amount was still earning inteicst in New Zealand, as it was required for the winter's work of 11)18-1!), and the policy was to hold the mcney in New Zealand until actually needed nt Home. It is : alleged that only £31,290 was disbursed in trench comlorts. Actually £i{j,sos was disbursed ns trench comlorts up to November 30, 1918, tUo differeuce of £15,211 being made up of canteen profits ieturned to the men in the torm of comforts. The K.S.A. executive erorucously assumes that tlw sum so expended in trench coinlorls has been the 'lull extent of the f'reo service rendered by this association, whereas, as a mailer of fact, the sum of £07,'j50 was, up to the same dale, used in providing build- j ings, tents, and equyiincnt, all oi which weio. lor the Jreo u»e ot the men, and, ] in addition, the sum oT *1-1,025 was ex- j pend-u-A for 'Jreo stationary literature, ! kiuemu and other uiiterruiunients. Tlio forcgoiug items represent a tot_\i of iree service of £118,780. Tlicie -iigures show that ("2.5 per ecu:, of the moneys sent overseas was expended in lice service, to the soldiers, witnout including items totalling £11,123. representing working expenses of huts (.including iigiitin;;. heating, transport, and salaries uf field sccrcUtries ana worm's). The actual administrative expenses at London headquarters up to ivove.JlAei' 30, 101.8, as siiown by the tame balance-sheet wcro £312(1. vjiicn works out at per cent, of the total London income of £1GD,57'.!. Furthermore', tils same administrative expenses covered tiio whole oi tlio trading operations referred to m a miVioiiuwit' paragraph. As reg-.mu tue consolidation of tlie jJn"lish &"'ri New Zealand balancesheets, tlw ne^'yy.adjustment has now been made by bringing tnem both down to Alarcli 31, I'JIO. In ikragraph (5) tlio U.S.A. executive treats certain running expenses as being administrative expenses. The actual a<lminisirativo charges in New Zealand up to tk-pteinbor 30, 1918, were 18711. The item £ ( JOIO is a field working expense, , consisting mainly _ of salaries to field secretaries on active service. Jt must be clearly understood that the military were in no way financially respuusib.e for any 1..M.C.A. men, and as these men wero serving tlio soldiers in I ranee. England, and Egypt, .this is certainly not an administrative' charge, l.mt -a part of a- free service., 'i'lie amount JSSllli lilts boon dealt tfHh in our runiuvks t>u the English balance-sheet, and is inincludes firo insurance on buildings ana is a proved running expense, and a part, of the free service lo the solmers. 1-lw Item 18458 is a New Zealand item, and included lire insurance on building* ana property, travelling,auft haulage oxjienditure, and Bed Triangie Bay expanse.), only part of wliioli arc administrative charges. The amount £ld3 is or tiaveiling and transport expenso, the bulk of which was spent in Franco> in our free servico there, i'ho item 1-loJ!) ha-> previously hcen dealt with m our itmarks on the English accounts, am i is made up of heating, lighting ot h i s, etc.,, which can in no way »o cailc h ( an administrative expense llje iuiuum s £1337 and 121W constitute the sum ot £;ii2(i, which was the administrative charge of the London headqiuuteis ofc Therefore, our total .ndmiuis. niivtt charges over the penod ot two » S »iI2W tUis |?Xr r Ts both New Zealand and J'jiigl.iuu. .\s ho total income during the Kimo period w™ £315,080 the cost ot n* imr tlio fund was 3.8 pet mil. in s result shows thirt U.e ol Hm executive ot the. iv.fc.A-. na\o o u stated our administrative, expense*. bj {">"> fi(i7 This is possibly the result oi HiTs committee's lack of ,X i /\f iii 4% f.,u C.A, scniw, in Uio ugntiuß v.o"b ,lul ' ln S tUu liisl U ° ymr "' Work in Euypt. M) Egypt: From page 5, item markJ "C of the y.M.C.A. » ' it appears that tlio sum oi HB,l,iS was remitted in J'' l " 1 ? ins September 30, 1918, to Lui )t: ' - o sUiU»ment luus been submitted ot tin. into oi* this HUin, «jul Mo deduction is that it was pooled m a fund with the American and British WHh'regard' to sums remilWl to ErypU the position is as tollo«s:--ln the t. ill days of the war, when there was no military department <>f t' ll) /calami V \1 C.A. lunch valuable work was done bv'the War Emergencv Couu.uHec of ho British Y.M.C.A. in by c.ni,>iiv on work among the New On the arrival of the hrst Ne« /ea i ml field secretary in Jvg.vpl', 111 la 3'> , it was decided to work under the i mt.ion of the War Emergency Committee, as it was obviously impn.-sible lor one to crcato a distinct New Zealand organisation. The money remitted irom lNew Zealand was paid 10 the lion, treasurer of the War Emergouty Committee, ou condition I'll at all the help necessary for Hid mnmtevmneo of tho Now /.euland Y.M.C.A. work was jjiven, and A&xland soldiers were the gainers thereby. This policy has been continued throughout tlio war. Money sent to Egypt, specially ear-marked for comlorts, hna been 6pont on Now Zealand soldiers. Up lo the present it Ims been impossible lo get a full statomont from Egypt, but wo are advised Chat tho Egyptian accounts

nro audited, and are on their way out l o Now Zealand. The Egyptian accounts were supervised by officials of ono of the leading banks 111 Cairo. Hostels and Tea Rooms, (6) It appears further from tills statement that during the war period Vliere is no return of revenue from tho Wellington Soldiers' Hostel or l'rom the Shakespeuro Hut m Eng. land. Both these- institulions have been run on capital contributed by the New Zealand public. (7; No statement lia,s been furnished in reference to the expenses of the Wellington tea room, Lambton Quay. Tho Wellington Soldiers' Hostel accounts are all audited to March 31, 1!)1!>, and will bo published witk other balancesheets in a fcw'_ days. The position in regard to the Shakespeare lint is as follows:—'Tins lint wao built in lOlli by the British Y.M.C.A. before the New Zealand Division -tins transferred from Egypt to France. When leave was granted to New Zealand soldiers irom 'France, .".ml from the camps being established in England, it became imperative for tiho New Zealand Y.M.C.A. to mukc suitable provision for hostel accommodation in London} At that time tho New Zealand Y.JI.C.A. had not trio necessary personnel or resources to establish \ hostel of its own in London, and an arrangement was made wil.li She British Wt.C.A. whereby the Shakespeare Tint became the hrmltiaavtew of the New Zenkiml Y.M.C.A., and popularised as the New Zealand Y.M.C.A. Hostel for men on leave. The administration of the business side of .the hut remained in the bands of the British Y.M.C.A., and as soon as a New Zealand Y.M.C.A. representative became available . he was attached to tiie hut for developing the social activities. l''roni time_ to time the New Zeahuid Y.JI.C.A. paid a proportionate' amount of the cost of additions found necessary in consequence ol the increasing popularity of the hut amongst New Zealand soldiers. Theamount paid out of the Now Zealand Y.M.C.A. fund .totalled about .£SOOO, representing approximately one-third of the total cost of the hut. Alt financial responsibility for the running of the canteen side of the hut was assumed bv tho British Y.M.C.A., who had recruited a voluntary staff of over 400 women and London business nicn tor tho purpese. i'ne service rendered to New Zealand soldiers by this hut is incalculable. A soldier could set a Ijed alul breakfast fur Is. Ud. in addition to tho many social attractions of the hut. 'Hie sanio accommodation without the social i'ucilit.es would cost. Gs. Od. at the cheapest hotel. The hut was open continuously night and day, and hail sleeping accommodation for over S'JO. Fully 80 per cent, of the men occupying- the hut were New Zealand soldiers. "When tho hue is finally disposed of the New Zealand Y.M.C.A. "War Fund will roceivc a proportional amount of the sum it realities. The information needed, re the Ked Triangle Hut, L.-unbton Quay, is in tho March 111, 1919, balance-sheet. Buildings and Equipment. (8) From item marked "L," page' 3 and shown also on page 5, it Appears that buildings, lunuture, and equipment represent the sum of .fill ,G7B, which figures in the expenses, but does not appear in the statement of assets and liabilities. _ While a very large proportion of this amount will not be recoverable it is quite obvious that it should have at least been ' included as a minimum asset in tho balance-sheet. (fl) From article "E" on page 7 the sum of ■C57,(!5 , J on building lenls and equipment is similarly treated. This, with the previous item, makes a total of ,£75,328, and it is remarkablo that, in a statement, of the British Y.M.C.A. a parallel amount of some .£70,0(H) has similarly • disappeared.

'['lie questions hero raised have been decided by our auditors . jii London and Now Zealand. Both thesefirms are of high Branding and wellknown to the public. 'We.fecl that their decision should he (|iiite satisfactory to Ihe U.S.A. On the other hand, we iiavo in London, an Assets Uealisation Board, which is now realising oar assets to lilt host advantage, Mid the proceeds will revert to" the 'War Fund. We/aro not concerned with other, associations' balance-sheets, but would state from evidence to hand, Hint the British Y.M.C.A. still retains public'confidence. Coupons, (10) The statement submitted, item "N," p:»ge (i, shows ihe sum oi i 27,K(i as received tor coupons. At Hid same date £15 lis. had been redeemed with coupons in Now Zealand, ami there is no trace of redemption in England of this balance. The executive of the B.S.A. has evidently not noted in the lir.liuice-slieet (England) a debit of £22,0K! >js. M. flgilinst tlie coupon account, ihiio showing that this aniount of coii.puns had been redeemed in London prior to November J)0, 1913. The .March, "101!!, bal-ancc-slicel: shows that coupons to ihe value of .628,283 3s. 7d. had been redeemed in England. £25,090 was drawn from Hie coupon trust, accuunl and dispatched to .London Øog February Ij, 1018. Every gtfo'f has bic-n." ninde. and is still being iniiuu, lo redeem the coupons returned to New Zealand. The assoc'niT tion has advertised in the Beturiied Soldiers' Association's journal , "Quick March," and also in the three Wellington daily papers, notifying that unredeemed coupons may b"e exchanged for cash at the national headquarters office, Wellington.

Trading Policy. i (11) The sums collected were for tlio tree distribution to soldiers and were never intended for trading. It Las already been shown that the money raised for the wur work of tlio 1.11. U.A. wns for the general war work of the association in all 'fields, and was not only for free distribution. The K.S.A. executive questions the right of the Y.ILC.A. to use fundi for trading purpose*. It is submitted that the Y.i.C.A. was within its rights to adopt any policy that hud for its object the rendering of a real service to the troops. The VM.G.A. adopted a trading policy with much rcluctance—tho prolit clement was hound to enter because nil price-, were fixed by an Army Order, with which the liad to abide, mid (lie a&sociulion knew that it laid itself open to criticism on the part of those who were um'iuiiiliitr with the situation. Tlio association took ample measures to make known anion;; the men that the only motive in adopting a trading policy was to render a. real service, and that any profits mado would revert to the,in in the form of free comforts—a policy which it will be observed from our balance-sheets has been faithfully carried out. The limits of spaec make it impossible (o elaborate Uio ma.nv reasons that prompted tlio New Zealand Y.JI.C.A. to adopt its trading policy. It is sufficient to say that it had the hearty approval of Major-General .Russell and BrigadierGeneral Uichawlson, and, not iho least, of the men who really knew the conditions that obtained overseas, particularly in France. .If tlio Y.M.O.A. had not carried on trading operations, tlio men would liavo been debarred from obtaining a Jargo quantity of necessities that tliev urgently needed, and which tliey otherwise would not have had. Returning Drafts. (12) It is noteworthy that Mio J.M.C.A. stilt pays out of its war funds tlio salary and expenses of oflienrs to meet returning dral'ls. Our work tor the New Zealand troops will not, we trust, rinish until the last soldier lias returned to civil life. The are olficia-llv met at Auckland\i and Wellington, but thi l ; service by no means represents the full work of tlio secretaries concerned. tor example, I lie Wellington troopship votary litis charge of the collection cf war stoi.s from reluming troopships, pacing samo through the Customs, unpacking and preparing same for their linal disposal. I he association lias also n. draft rceretary at. Colon, Panama, whose duty it is to provide lor the entertainment and core of the. troops while ashore, and lo adequately provide fresh fruit and other comforts for the remainder of the voyage. If 1 iirt'lier information is required as to the need and value of this work, we refer them to O.C.'s of returning troopships. Huts in New Zealand. (13) Among other plac.cs, lmts have been established b.v tho Y.M.C.A. -t

liotonin, Waipukurau, InverenrKill, Jlanmer, and Homes Island. It is further proposed to establish a hut at tlio hospital in Cliristtliuifli. All these huls are staffed and maintained on amounts collected for the Trench Comforts. Fund. Huts h:ivo been established as stilted, although no staffs liave been attached to Wnimiknr&u, Inveuar.ijiH, or Somes Island. As soon as Waipukuiau is ready tor occupation it is proposed to carry on a diiniiliiiT work to that in operation at the Cambridge Sanatorium. The huts nro stalled and maintained wherever iicoeasary out: of moneys collected for our ffciiOKil war work, not out of funds specially ear-marked for trench comforts. Conclusion, In conclusion, we desire to assure tlio pu'olic that the National Committee has administered the funds so generously given for the benefit uf New Zealand ioldiers and not in any case fur its ordinary Y.M.C.A. activities. So anxious has tile committee been to failhl'u.ly carry out its trust, that .Messrs. Jameson, S'mceton, LiiseeHes, T\'. 11. George, and J. M'L'ldowney (members of the committee) Im.vo «t their own expense, mid at groat inconvenience, spent considerable periods of time overseas in order to satisfy tliomsol'ves and their committee that the moneys were spent in accordance with the wishes of the donors. Uther members of the committee havo toiled uncoiwingly during the war period in connection with the work, The Y.M.C.A. has done its best both at homo and at me front, and is content to leave its case to the judgment of the contributors. (To the Editor.) Sir,—After the above stateinont was pre. pared, we received from the general secretary 0 f t] la j;.y.,\. a t . o „ v 0 j- hu execu . nye s deductions from our balance-sheets with tlio following explanation, which is accepted :—"I herewith enclose a copv of .ho schedule which wo forwarded to'the newspapers with our recent statement, and the forwarding of which to you at the same time was unintentionally overlooked."' Tim schedule above referred to was handed to the Press on Monday last, And courteously passed on to us for reply in order Unit deductions and explanations might bo published together. Wo •0-rc grateful to the Wellington Press tor its consideration.—Yours faithfully, N. W. KEUSLEV, National Chairman Y.M.C.A.